Michael,
Both images were converted from .BMP to .JPG to post but I always use the highest quality available on CS4 when doing this conversion. I am not really savvy re the compression that may occur in the .AVI and have not been able to pick the difference with different CODECs that I have tried.
Sorry if I haven't answered your question but that's about the extent of my knowledge in this area
Here is another process from the same morning